Support

A cookie is a piece of data stored by your browser or device that helps websites like this one recognize return visitors. We use cookies to give you the best experience on BNA.com. Some cookies are also necessary for the technical operation of our website. If you continue browsing, you agree to this site’s use of cookies.

Events

Bloomberg Next marketing services allow clients to elevate their brands and extend their reach through our established and trusted expertise, enhanced with engaging event production, appealing design, and compelling messaging.

April 27—Employees in Israel's insurance sector continue to unionize. A third major insurance group—AIG Israel—recently signed a collective agreement, joining recently unionized Clal Insurance Enterprises and Migdal Insurance and Financial Holdings Ltd.

The trend toward unionization is gathering steam against the backdrop of studies showing that Israeli insurance companies have become a financial empire, growing far faster than the economy as a whole due to a legal provision requiring that all Israeli workers maintain a pension fund. Insurance companies currently manage about 1.1 trillion shekels ($279 billion) in pension savings, a figure expected to double by 2020, and the average family now spends 12 to 16 percent of its disposable income on insurance premiums, according to the Public Trust consumer organization.

‘Far Beyond' the Insurance Sector

The insurance sector has also been scrutinized for the large salary gap between its senior executives and the many thousands of clerks on the junior and intermediate levels who earn close to the average wage and significantly less than their peers in other financial sectors.

“The high cost of insurance and negative public opinion about high executive salaries in general is providing fertile ground for union organizers,” a Histadrut union official told Bloomberg BNA April 20, noting that the trend “includes but reaches far beyond” the insurance sector.

Salary Gap Narrowing, But Still Broad

The average annual salary cost of the 10 highest paid insurance executives in Israel totaled 6.2 million shekels ($1.6 million) in 2014, while the average salary cost of their employees totaled 225,000 shekels ($58,000), just 3.6 percent of the executives' average, according to the companies' year-end financial statements.

The gap is narrowing, however, under intense pressure and regulatory changes pursued by the Finance Ministry. In 2013, insurance company employees cost their employers an average of 229,000 shekels ($59,000), only 2.5 percent of the average annual salary cost of the sector's highest paid executives.

Still, the gap is larger than in other financial sectors. Many insurance executives earn more than their peers in the banking sector, while rank-and-file employees earn far less than their counterparts in the other major financial sectors.

The average salary cost among employees at Israel's five largest banks totaled 366,000 shekels ($94,000) in 2014, at Israel's five largest investment houses only 294,000 shekels ($76,000).

In response, the Finance Ministry has proposed that authority for overseeing bank salaries be shifted to it from the Bank of Israel in order to address the gaps.

All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.

Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)

Notify me when updates are available (No standing order will be created).

This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.

Put me on standing order

Notify me when new releases are available (no standing order will be created)